Major news announced yesterday, 19 May 2021. 100% foreign ownership set to start from 1st June 2021.
This is fantastic news, but we cannot confirm to which activities will apply.
As those following the corporate changes will recall:
- In December 2020 changes were introduced in the UAE Federal Companies Law (Federal Law No. 2/2015) (“UAE Companies Law”) removing the requirement for 51% of LLCs to be owned by a local emirati holder.
- The December announcement specified that activities without strategic impact will not need the 51% UAE ownership. Activities bearing strategic impact will be made subject to some degree of UAE ownership requirements.
- A Committee was set in place to work on the strategic impact of activities, and it was supposed to release details of their works by 1 April 2021.
The recent announcement of 19 May 2021 advances the date when the changes introduced to the Companies Law will set off but does not clear which activities are considered to bear strategic impact and to which degree.
We have to continue to await on releases of pieces of information. We are keeping a close eye on the developments and share it as soon as news are out. As soon as this information is out existing companies may wish to proceed to implement changes into their structure.
**DISCLAIMER: This information is not intended to be and is not to be read as legal advice.